The International Trade Commission (ITC) has set into motion the enforcement of estimated duty rates set by the Department of Commerce (DOC) in the case of multilayered wood flooring (MLWF) imported from China.

While both sides disagree on much — both said that the most significant piece of this complicated matter is the potential annual review of rates and the retroactive liability that importers of record will incur should the rates be increased.

Current rates for which the border control will collect cash deposits can increase, or decrease, as a result of the annual review. It is the importer of record only that is held accountable for the cash deposit and responsible for any retroactive liability.

Jonathan Train, president of the opposition Alliance for Free Choice and Jobs in Flooring (AFCJF), has cautioned that companies will be in a "banking limbobCrLf regarding rates because of the annual review process. "It handcuffs the import companies.bCrLf

In a release following the hearing in October, Train reported, "In effect, an importer could pay 4.81 percent for a shipment made in January 2012 but then get assessed a higher rate over a year later for that shipment. Retroactive liability therefore makes it impossible for importers to estimate their true costs and can cripple the industry's ability to develop lasting programs.bCrLf

The burden lies squarely on the importer of record. Train explained, "One thing that I've stressed and talked about at NAFCD, is that if you are not the importer of record, you really don't have to worry about this stuff. Anyone else downstream has no burden.bCrLf